The Minister of State for Commerce and Industry, Jitin Prasada has said in the Lok Sabha that the United States under the Trump administration has not yet imposed reciprocal tariffs and that both countries were planning to negotiate a trade agreement, focussing on increased market access, reduction of import duties and removing non-tariff barriers.
In a written reply to the Lok Sabha, the Minister said, “Both countries plan to negotiate a mutually beneficial, multi-sector Bilateral Trade Agreement. Both countries would focus on increasing market access, reducing tariff and non-tariff barriers, and enhancing supply chain integration.”
Confirming the same, the Commerce Secretary Sunil Barthwal informed the Parliamentary Standing Committee on External Affairs that negotiations between the two nations are still on and no agreement on trade tariffs has been reached so far. Barthwal briefed the committee, headed by Congress MP Shashi Tharoor, and said that bilateral trade agreement talks between the two nations are still on.
When members of the committee asked why India was not raising its voice against tariffs, as done by Canada and Mexico, he said the two were not comparable as the US had security concerns and border immigration issues with them.
It is reported that the Commerce Secretary assured the committee that India will sign a “mutually beneficial agreement”. He said India will protect any industry which is crucial to its domestic economy, saying that developing countries cannot lower their tariffs on everything.
It must be mentioned here that soon after Donald Trump took charge as President of the US, the US government issued Memorandum on Reciprocal Trade and Tariffs, wherein the Secretary of Commerce and United States Trade Representative were to take necessary actions to investigate harm to America from any non-reciprocal trade arrangements adopted by trading partners and provide a report with detailed proposed remedies for each trading partner.
Prasada also said that India continues to engage with the US to achieve enhancement and broadening of bilateral trade ties in a mutually beneficial and fair manner. “This is an ongoing exercise and Indian exporters are working towards diversifying trade baskets and export destinations.”
In 2023-24, India exported engineering goods worth USD 17.62 billion. The other major goods included electronics (USD 10 billion), gems and jewellery (USD 9.9 billion), petroleum products (USD 5.83 billion), textiles (USD 4.7 billion), marine products (USD 2.5 billion). During 2021-24, America was India’s largest trading partner. The US is one of the few countries with which India has a trade surplus. Trump had said, “India charges us massive tariffs, massive you can’t even sell anything in India. It’s almost… it is restrictive. You know, we do very little business inside. They have agreed, by the way. They want to cut their tariffs way down now because somebody’s finally exposing them for what they have done.”